During the reign of Manuel I (XVI century), the castle was transformed into a palace. Nowadays, since 1950, the castle is home to the luxurious Pousada Castillo de Óbidos, with six rooms and two suits.

The castle still preserves valuable elements such as the entrance archway, the manueline style windows, geminated; or the open-air aljibe discovered in 1931 next to the homage tower.